SP0401, LD 1305, item 1, An Act To Encourage Savings through Contributions to Family Development Accounts

An Act To Encourage Savings through Contributions to Family Development Accounts

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 36 MRSA §5219-VV is enacted to read:

§ 5219-VV. Contributions to family development account reserve funds

1. Credit allowed. A taxpayer who contributes to a family development account reserve fund as defined in Title 10, section 1075 is allowed a credit against the tax imposed by this Part equal to the lower of:

A. Twenty-five thousand dollars; or

B. Fifty percent of the amount contributed by the taxpayer.

Only one credit may be claimed on each annual income tax return regardless of filing status. The credit allowed under this section may not reduce the tax to less than zero and must be applied after allowance for all other eligible credits. A taxpayer who claims a credit under this section may not claim an itemized charitable deduction under section 5125 for the amount of the contribution that qualified for the credit.

2. Aggregate limitation. The total amount of contributions that may be claimed as credits under this section in a state fiscal year is limited to $200,000.

3. Verification of eligibility. The State Tax Assessor shall verify all claims for a credit under this section. The State Tax Assessor may establish procedures requiring submission of information necessary to verify eligibility by family development account reserve fund administrators.

4. Application. The tax credit allowed under this section applies to taxable years beginning on or after January 1, 2020.

summary

This bill creates a tax credit of up to $25,000 for taxpayers who make contributions to family development account reserve funds.

SP0401 LD 1305	Session - 129th Maine Legislature		LR 1029 Item 1
	Bill Tracking, Additional Documents	Chamber Status

Bill Tracking		Chamber Status
Amendments	Testimony, Public Hearings & Work Sessions		Committee Information for this Bill
Other Documents			Title & Section

Search Bill Text		Search Bill Status
Bill Directory	Current Committees		Legislative Information
Download MS-Word, Printed PDF		Maine Legislature

Office of Legislative Information 100 State House Station Augusta, ME 04333		voice: (207) 287-1692 fax: (207) 287-1580 tty: (207) 287-6826
Word Viewer for Windows		Disclaimer